January 28, 2026

Listening to Markets, Not Headlines

by Ewen Emmerson

in Insights Research

Financial markets are rarely short of opinion. Headlines compete for attention, forecasts shift by the week, and narratives often move faster than the underlying evidence. In this environment, one of the most important disciplines for long-term investors is knowing what not to react to.

At Brighton Capital Management, our investment process is built around listening to markets rather than responding to daily news flow. That does not mean ignoring events or developments. It means distinguishing between signal and noise, and understanding which information genuinely alters the long-term investment landscape.

Markets speak in prices, not predictions

Markets communicate through prices, relative performance and capital flows. These signals often evolve gradually and consistently, even as headlines fluctuate wildly.

When investors focus too heavily on short-term narratives, they risk missing what markets are already telling them. Volatility in sentiment does not always equate to a change in fundamentals. Likewise, uncomfortable periods in markets are not unusual in the later stages of an economic cycle and do not, by themselves, signal an imminent end.

History suggests that cycles rarely end because investors are worried. They tend to end when earnings deteriorate meaningfully or when liquidity tightens abruptly. Neither develops overnight, and neither is best identified through headlines alone.

Why process matters more than speed

In an age of constant information, the temptation to respond quickly is understandable. But speed is not the same as insight.

Our approach places greater weight on:

• sustained trends in earnings and investment,
• changes in financial conditions and liquidity,
• evidence of stress in credit and funding markets,
• relative pricing across asset classes,
• and the behaviour of real assets as indicators of confidence in the system.

These factors tend to change more slowly, but they are far more informative than daily commentary or political speculation.

The danger of over-reaction

Frequent changes in positioning can feel reassuring in uncertain times, but they often introduce new risks. Over-reaction increases transaction costs, raises the risk of poor timing, and can undermine the compounding effect that long-term investing relies upon.

That does not mean portfolios should be static. It means that adjustments should be deliberate, evidence-based and proportionate, made when the balance of risks has genuinely shifted rather than when sentiment has become uncomfortable.

Late cycle does not mean end of cycle

Economic expansions do not end neatly, and markets rarely provide a clear signal in advance. Late-cycle environments are often characterised by greater dispersion, higher volatility and louder debate. They can also remain productive for longer than expected.

For investors, this reinforces the importance of diversification, selectivity and patience. The objective is not to predict turning points, but to remain aligned with long-term drivers while managing risk thoughtfully.

Staying focused on what matters

Our role as stewards of capital is not to anticipate every market move, but to build resilient portfolios that can navigate a range of outcomes. That requires consistency of process, openness to evidence, and a willingness to look beyond the noise. Markets are always speaking. The challenge is knowing which signals deserve attention.